American Realty Investors Inc. (ARL) filed Quarterly Report for the period ended 2012-09-30.
American Realty Investors, Inc. has a market cap of $34.1 million; its shares were traded at around $2.69 with and P/S ratio of 0.3.

Highlight of Business Operations:

For the three months ended September 30, 2012, we reported a net loss applicable to common shares of $0.05 million or $0.00 per diluted earnings per share, as compared to a net loss applicable to common shares of $0.3 million or $0.03 per diluted earnings per share for the same period ended 2011.

Mortgage and loan interest expense was $9.8 million for the three months ended September 30, 2012. This represents a decrease of $4.0 million, as compared to the prior period interest expense of $13.8 million. This change, by segment, is a decrease in our apartment portfolio of $0.7 million, a decrease in our commercial portfolio of $2.5 million, and a decrease in our land and other portfolios of $0.8 million. Within the apartment portfolio, the same properties decreased $1.6 million and the developed properties increased $0.9 million due to properties in the lease-up phase. For the developed properties, once construction is completed, interest expense is no longer capitalized. Within the commercial portfolio, the same properties decreased by $2.5 million. This decrease is related to a commercial loan that was in default in 2011 and was accruing interest at the default interest rate. The loan is no longer in default and is no longer being charged a default rate of interest in the current period. The decrease in the land and other portfolios was due to land sales.

Gain on land sales increased for the three months ended September 30, 2012, as compared to the prior period. In the current period, we sold 102.28 acres of land in seven separate transactions for an aggregate sales price of $16.1 million and recorded a gain of $2.9 million. In the prior period, we sold 3,068.60 acres of land in eight separate transactions for an aggregate sales price of $52.6 million and recorded a loss of $0.9 million.

Rental and other property revenues were $89.5 million for the nine months ended September 30, 2012. This represents an increase of $3.9 million, as compared to the prior period revenues of $85.6 million. This change, by segment, is an increase in the apartment portfolio of $7.5 million, offset by a decrease in the commercial portfolio of $3.0 million and decrease in the land and other portfolios of $0.6 million. Within the apartment portfolio, there was an increase of $5.3 million due to the developed properties in the lease-up phase and an increase of $2.2 million in the same property portfolio. Our apartment portfolio continues to thrive in the current economic conditions with occupancies averaging over 95%. Within the commercial portfolio, the same property portfolio decreased by $3.0 million, primarily due to miscellaneous non-recurrring revenue received in the prior period. We continue to market our properties aggressively to attract new tenants and strive for continuous improvement of our properties in order to maintain our existing tenants.

Gain on land sales decreased for the nine months ended September 30, 2012, as compared to the prior period. In the current period, we sold 684.58 acres of land in 16 separate transactions for an aggregate sales price of $35.1 million and recorded a gain of $6.6 million. In the prior period, we sold 4,360.24 acres of land in 39 separate transactions for an aggregate sales price of $163.5 million and recorded a gain of $18.4 million.

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